Monday, June 4, 2007
Amp'd Mobile Files For Bankruptcy
In a spectacular flameout, Los Angeles-based Amp'd Mobile has filed for Chapter 11 bankruptcy, saying Friday that it has been unable to keep up with customer demand due to rapid growth. The firm said that the bankruptcy was a "necessary and responsible action to sustain and strengthen our momentum in the market place." Amp'd Mobile said that it expects to continue normal business operations through the bankruptcy. According to a statement released by the firm, it is working with one of Amp'd Mobile's largest investors to obtain debtor-in-possession financing. Name of that investor was not disclosed. Amp'd Mobile has raised more than $375M in venture capital financing for its mobile phone services; the firm has been dogged by rumors of the departure of the firm's CEO, Peter Adderton, for the last several months.